The formation of a coalition government in South Africa following the 2024 elections brings a mix of economic plans that could impact everyday citizens.
Here’s a look at how the leading parties’ manifestos outline their economic strategies and what this could mean for jobs, prices, and overall economic stability.
The ANC's manifesto addresses the high cost of living with proposals such as VAT exemption on essential items, land reform, support for community and home gardens, and action against price fixing.
They plan to expand subsidised basic services like water and housing and strengthen health services through the implementation of National Health Insurance (NHI).
For job creation and economic development, the ANC aims to create 2.5 million public work opportunities, increase support for small enterprises with a focus on women, youth, and persons with disabilities, and promote employment equity within the private sector.
In contrast, the DA's economic policy emphasises private sector-led growth, creating conditions for private enterprise to flourish with reduced government interference.
They propose Youth Employment Opportunity Certificates and aim to replace B-BBEE with policies targeting poverty and economic exclusion without race classification.
Their fiscal management strategy includes controlling public debt, reducing the fiscal crisis, and implementing tax reforms to lower the tax-to-GDP ratio, while providing a strong social welfare safety net.
Goodenough Mashigo, a political analyst said: "A coalition government may lead to more inclusive decision-making and a more diverse range of perspectives, which could result in more targeted and effective economic policies.
“However, the need for consensus among coalition partners may lead to watered-down policies and a lack of decisive action on key economic issues."
The EFF's manifesto focuses on increasing tax collection by combating tax avoidance, curbing illicit financial flows, introducing a wealth tax, and raising corporate income tax.
They emphasise equitable revenue distribution, service delivery, and building government-owned infrastructure.
The EFF also plans to abolish tenders, employ workers directly in state-owned entities, and support state-owned companies.
They advocate for increased capital gains tax and inheritance tax to ease the tax burden on the poor.
"The economy before 1994 was functioning properly for many, with consistent electricity and no load shedding. The ANC should negotiate with a party that recognises current issues, rather than one that believes things are better now.
“The ANC needs to go into a coalition with a party that points out what is wrong with what is happening now, and UMD is that party because it has been good to the people and created jobs long ago," Mashigo added.
The MK Party aims to create five million jobs in five years by focusing on sectors such as mining, agriculture, re-industrialisation, tourism, and infrastructure.
They propose implementing policies to clear growth impediments and maximise natural resource potential for all South Africans.
The IFP's employment and economic development plans include setting employment targets for companies to employ at least 80% South Africans and reserving entry-level jobs for locals.
They promote South African products, support local industries, and aim to remove red tape for small enterprises, providing grants for rural and township businesses, and supporting small-scale farming.
The IFP also proposes an Unemployed Graduate Grant and internships for graduates.
Their fiscal and State-Owned Enterprises (SOEs) policy focuses on limiting public debt, refusing further bailouts for SOEs, opening the energy market, investing in infrastructure, and promoting public-private partnerships.
Political analyst, Levy Ndou had this to say: "A potential coalition government's economic policies will likely have a mixed impact on ordinary South Africans. On the one hand, a coalition government may lead to more inclusive decision-making and a more diverse range of perspectives, which could result in more targeted and effective economic policies.
“On the other hand, the need for consensus among coalition partners may lead to watered-down policies and a lack of decisive action on key economic issues.”
Mashigo added: "To battle these economic issues, we need a government that works and inspires confidence in business to invest, knowing that returns will be realised in the future.
“Rhetoric is not going to work, pointing fingers is not going to work. Right now, parties need to be united to save the country.
“A coalition with one party is not going to work; it needs to be a broad-based coalition.”
The coalition government’s economic plans have the potential to significantly reshape South Africa's economy.
The success of these plans will depend on the coalition's ability to harmonise their differing manifestos and present a unified economic front.
As South Africans watch closely, the hope is that this coalition can deliver on its promises and create a more stable and prosperous future for all.
IOL